ESG and firm performance: The role of size and media channels

Bissoondoyal‐Bheenick, Emawtee; Brooks, Robert; Xuan, Hung

doi:10.1016/j.econmod.2023.106203

Cited by 72 publications

(42 citation statements)

References 71 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Collectively, the above findings indicate that the impact of GFP on corporate ESG performance is more prominent when companies face higher external pressures. This is consistent with the strategic responses that companies undertake to satisfy legitimacy (DasGupta, 2022;Reber et al, 2022) and attract investors (Agosto et al, 2023;Bissoondoyal-Bheenick et al, 2023;Peng et al, 2023).…”

Section: External Pressuressupporting

confidence: 82%

“…Within the company, both organizational attributes and individual characteristics matter for ESG outcomes. Existing studies find that firm size (Bissoondoyal-Bheenick et al, 2023), ownership structure (Rees & Rodionova, 2015), corporate governance (Lagasio & Cucari, 2019;Zhang, Pan, et al, 2023), and organizational capabilities (Fang et al, 2023;Liang & Li, 2023;Yang & Han, 2023) have impacts on corporate ESG performance. In this regard, considerable literature focuses on the role of corporate governance in corporate sustainability (Aguilera et al, 2021;Campanella et al, 2021;Kavadis & Thomsen, 2023;Scherer & Voegtlin, 2020).…”

Section: Esg Practices In Chinamentioning

confidence: 99%

See 1 more Smart Citation

Striving for sustainable development: Green financial policy, institutional investors, and corporate ESG performance

Lei,

2023

Corp Soc Responsibility Env

View full text Add to dashboard Cite

Environmental, social, and governance (ESG) practices play an increasingly important role in achieving sustainable development goals. Drawing on institutional theory, this paper empirically explores whether and how green financial policy affects corporate ESG performance. Taking China's pilot policy for green finance reform and innovation (GFP) as a quasi‐natural experiment, we employ the difference‐in‐differences model to investigate the causal relationship between green financial policy and corporate ESG performance. We find that the GFP significantly improves corporate ESG performance. The results are robust to a series of checks such as parallel trend examination, placebo test, mitigation of omitted variable bias, alternative variables, and the exclusion of contemporaneous policies. The heterogeneity analysis shows that the positive impact of GFP on corporate ESG performance is more pronounced for firms with tighter financial constraints, higher agency costs, and more external pressures. On this basis, we further document that the positive impact of GFP on corporate ESG performance is more pronounced for investee firms with more institutional ownership. The above findings indicate that the formal institution of government‐led green financial policy can positively affect corporate ESG performance, and market participants‐institutional investors help to strengthen this policy effect. Overall, our study sheds light on the significant role of green financial policy in promoting corporate sustainability.

show abstract

Section: External Pressuressupporting

confidence: 82%

Section: Esg Practices In Chinamentioning

confidence: 99%

Striving for sustainable development: Green financial policy, institutional investors, and corporate ESG performance

Lei,

2023

Corp Soc Responsibility Env

View full text Add to dashboard Cite

show abstract

“…The discourse surrounding ESG factors has been gaining considerable attention in both academic and industry circles, with a growing body of literature exploring the impact of ESG activities on corporate performance. Bissoondoyal‐Bheenick et al (2023) propose an intriguing standpoint on the value of ESG investments, suggesting that such commitments can enhance overall firm value. They posit that ESG activities can hedge against ESG‐related risks, thus benefiting firms and their investors.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The discourse covers diverse dimensions, including firm value, risk‐taking behavior, loan contracting, climate change commitments, and the impact of ESG disclosures. For instance, Bissoondoyal‐Bheenick et al (2023) articulate that ESG investments can bolster firm value and reduce associated risks, emphasizing the role of economies of scale and effective communication in implementing ESG activities. Concurrently, He et al (2023) underline the significance of ESG for sustainable growth and its influence in curbing corporate risk‐taking behavior, particularly highlighting the role of information transparency and corporate governance.…”

Section: Introductionmentioning

confidence: 99%

How do ESG activities affect corporate performance?

Kao

2023

Manage Decis Econ

View full text Add to dashboard Cite

This study investigates the impact of a company's environmental, social, and governance (ESG) activities on its financial performance. The COVID‐19 pandemic has caused unexpected difficulties in the operations of most companies, leading to a significant deterioration in their financial performance. We use empirical analysis to examine whether a company's ESG activities affect its financial performance. We employ the context‐dependent data envelopment analysis (DEA) model to evaluate the performance and provide a benchmark‐learning roadmap for 27 photoelectric companies in Taiwan. We also compare the marketability, innovation ability, and profitability of three sub‐industries: camera modules, optical component lenses, and optical components. Furthermore, we utilize a combination of classical DEA, stratification DEA, measurement of attractiveness, and progress for company evaluation. The results indicate that validating sustainability reports has a positive information effect, and high‐quality Global Reporting Initiative‐based external third‐party confirmed reports possess relatively high credibility, readability, and information value. The content and quality of these reports have an impact on performance. These findings offer insights into the role of ESG activities in the photoelectric industry and can help managers reflect upon and justify their choice to invest in specific ESG activities. Therefore, this research highlights the importance of green operations for firms.

show abstract

“…The relevance of CSR performance in business is well documented in the literature (Aydogmus et al, 2022;Bissoondoyal-Bheenick et al, 2023;Horn et al, 2018;Kuo et al, 2021;Lee & Choi, 2021;Samet et al, 2022;Shen et al, 2016;Siueia et al, 2019;Thompson et al, 2022). However, insights from pre-COVID-19 studies may not generalize to the COVID-19 setting (Clampit et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

An empirical study on the cushioning effect of corporate social responsibility on the negative impact of COVID‐19 on firm performance

Buertey,

Chu,

Thompson

2023

Corp Soc Responsibility Env

View full text Add to dashboard Cite

Embedded in the legitimacy and stakeholder theories in the context of corporate social responsibility (CSR), this study investigates the impact of COVID‐19 on firm performance, and the cushioning effect of CSR on the relationship between COVID‐19 pandemic and firm performance. The sample covers non‐financial firms listed on the Johannesburg Stock Exchange (JSE), South Africa. Data covering the period 2018–2021 were analyzed using multivariate linear fixed‐effect regression techniques. COVID‐19 has had a negative impact on firm performance, proxied by Tobin's Q and Sales Turnover, while CSR has a positive impact on firm performance. We also found that the negative impact of COVID‐19 on firm performance differs between high and low CSR performing firms. Additionally, based on an industry‐level analysis, we provide insight into the most affected and most resilient sectors. The findings should motivate more firms to take CSR issues more seriously and adopt such practices as part of their long‐term strategic tools to gain competitive advantage and enhance profitability in the long run.

show abstract

ESG and firm performance: The role of size and media channels

Cited by 72 publications

References 71 publications

Striving for sustainable development: Green financial policy, institutional investors, and corporate ESG performance

Striving for sustainable development: Green financial policy, institutional investors, and corporate ESG performance

How do ESG activities affect corporate performance?

An empirical study on the cushioning effect of corporate social responsibility on the negative impact of COVID‐19 on firm performance

Contact Info

Product

Resources

About